As the global population is rising, property development is becoming one of the biggest industries. Every individual needs to establish their houses and therefore, accommodating house to every individual is a major task of the country. As there was high demand of people to establish their houses or flats, it exerted a pull on to the property developers to invest and earn through various housing schemes, commercial markets or flats, etc. big money transactions are flowing under real estate market. The global real estate investment market as per recent statistics has been increased from $9.6 trillion to $10.5 trillion. There is a development in the property market because of which it gives an opportunity for many people to enter into the market. It also offers many chances for developers all around the globe for exploring new markets which they might not have seen by their own. However, there are a number of challenges and issues which continues to spate property developer, which they are facing as the industry continues its expansion.
Who is a Property Developer?
A person who buys, sells, or develops the real estate in exacting areas with the giving of services like designing and construction is known as a Property Developer. Homes and flats are the most accepted type of properties that developer’s sale and purchase. They also have a sale of lands, shopping malls, commercial spaces, etc.
NRI’s investment in real estate
NRI’s who don’t live in India and don’t visit to India often but has the connection with their belongings generally invest their money in India only and real estate is the most common part of investing here in India. NRI people take money from foreign nations and start investing it in properties through builders owning a large area of property business in India.
Why Developing Property is a difficult Business?
Developing property looks as if like it an easy business to run, but it is actually multifaceted. Developing property is difficult because many factors are involved in running this type of business. For instance, you need to get the right location, financing should be secured for your project, and manage construction. Also, different levels of development are supposed taken care of and are not limited to attracting tenants, securing financing, obtaining zoning variances, and other project tasks.
When should people seek legal device
Possession disputes:-
Big companies of real estate frequently take money before constructing residential and commercial buildings. The owners face so many problems on the time of receiving the possession. There may or may not be a fault in exceeding possession by the owners of the property to the buyers. In real estate business sometimes the possession disputes arises which needs legal assistance.
Record of the property:-
Property on purchase needs to be clear from earlier faults. Before purchasing or selling the property should be checked out legally with legal counsel’s help. Also, the lawyer’s are supposed to check the sale and purchase of the property to see whether the property has been the part of any litigation or not.
Claim possession:-
People face high losses in terms of money as the builders doesn’t frequently pass the property on scheduled time. In that matter, to recover the possession legal advice would be helpful and a person needs to come with the documents of the concerned property to the advocate.
Precautions to be made:-
There are some certain precautions which a person should take in order to avoid the property disputes, these are as follows:
- A person should take the proper legal document in return of the property where he is investing. However, proper legal documentation should be taken and legal paperwork is supposed to be done.
- Past records of the builder and his company must be checked before coming into the contract with him. There should be no legal suits of records pending against him. This process can be done by the help of a legal counsel.
- Also, the balance sheets of the company should be seen whether there are any committing monetary frauds in the past or not. If there is any fraud seems to be done, then one should avoid investing in that particular company.
- The market price of the property should be checked out as the NRI’s don’t know about India’s market because of which builder’s try to seek benefit out of it. Therefore, current market situation should be given.
- A brief look at the project must be given before the investment.
- For verification to the lawyers the documents are supposed to be given of all the types. Also, the receipts or all the documents should be kept safe.
- The property of investment must be checked in detail by the investor.
Legal Action:-
If a company with whom the person is investing does any fraud or wrong, he cannot run away from the law and a person can claim a relief against him by filing a suit for claim in the civil courts with the help of experienced lawyers. For filing the suit, following documents are to be required which are:
- The meeting details.
- Receipts of amount paid.
- Property details.
- Copy of agreement or contract.
- Delivery of possession details.
Conclusion
Property development is not an easy task. They need to work under the rules and regulations of the government because of which they sometimes are not able to make what they wanted to. There are other various challenges which a property developer faces like marketing and technology, etc. This business is quite a sensitive one as even a small negligence can lead to a lot of many worrying circumstances. Though it is challenging to take care of every little nuance, it is critical to do so, and a person should not be indecisive in taking adequate help whenever needed.
Know More: Real Estate (Regulation and Development) Act